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Dec. 22nd, 2006 01:14 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
timeletsColumnist ![[livejournal.com profile]](https://www.dreamwidth.org/img/external/lj-userinfo.gif)
maxim_sokolov provides a dumbed down Malthusian version of Ricardo's economic model, in which rent holders and capitalists act as market foes. To justify his ideological position the author conveniently forgets about modern international division of labor, wherein rent holders, labor, and captalists switch roles depending on the direction of trade flows. For example, Russian oil exporters, i.e. rent holders, turn into equipment importers, i.e. capitalists, when they buy oil production equipment in the West. So whatever price advantage they gain on the initial sale is given back during subsequent technology purchases. Very simple. That's why long-term international trade is built on win-win deals and not on price gouging or extortion.
maxim_sokolov provides a dumbed down Malthusian version of Ricardo's economic model, in which rent holders and capitalists act as market foes. To justify his ideological position the author conveniently forgets about modern international division of labor, wherein rent holders, labor, and captalists switch roles depending on the direction of trade flows. For example, Russian oil exporters, i.e. rent holders, turn into equipment importers, i.e. capitalists, when they buy oil production equipment in the West. So whatever price advantage they gain on the initial sale is given back during subsequent technology purchases. Very simple. That's why long-term international trade is built on win-win deals and not on price gouging or extortion.
